Accounting-Balance Sheet

Balance Sheet 1. Purpose: The purpose of the balance tack is to strict out the financial position of a calling at a cross point in time. 2. It contains a picnic shot of the additions, liabilities and equity position of the entity at a particular point in time. 3. Balance sheet refers to a description of financial position. Assets (Current/Non Current) 1. A resource controlled by the entity as a result of past events, and from which economic eudaemonias are judge to stream to the entity. 2. The main identifying characteristics of an asset are: 1) Expected prox economic benefit. 2) The business has exclusive right to control the benefit. 3) The benefit essential arise from some past transaction or event. 4) The asset must be capable of reliable measurement in monetary terms. 3. Examples: Freehold pre mises, Machinery and equipment, Fixtures and fittings, Patents and trademarks, Debtors (Accounts receivable), Investment. 4. Current Assets ( deep down 12months) Examples: Cash, Inventory, Trade debtors, Pre-Payment 5. Non-Current Assets: Held for the purpose of generating wealth, preferably than for resale. whitethorn be seen as the tools of the business. 6. Non-Current Assets Examples: Equipment, Land, Motor vehicles, Fixtures and Fittings, Liabilities (Current/Non Current) 1. A pass on pact of the entity arising from past events, the settlement of which is expected to result in an flight from the entity of resources embodying economic benefits. 2. Examples: Creditors, Staff entitlements, Loans and other credit facilities, imprimatur viands and other social or moral obligations, homework for employee bonuses or owners distribution. 3. Current Liabilities: Amounts due for repayment to outside parties within 12monthes of the assertion of finan cial position date. 4. Current Liabilit! ies Examples: Accounts payable, Bank overdraft...If you pauperism to guide a full essay, order it on our website: OrderCustomPaper.com

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